Will ELI scheme fix India's jobs crisis? A comprehensive rethink needed

The proposed employment incentive scheme is a commendable start, but it risks worsening India's employment problem

India is grappling with a stark economic paradox: While gross domestic product (GDP) growth remains robust, job creation lags woefully behind. Despite the economy expanding by 8.2 per cent in FY24, there has been a persistent decline in the labour force participation rate (50.2 per cent in Q1 FY24, as reported by the Periodic Labour Force Survey) and a rise in the unemployment rate (9.2 per cent in June 2024, according to the Centre for Monitoring Indian Economy). This disconnect between India’s booming economy and its stagnant job market poses a significant structural challenge that could derail